Enlightenment Through Understanding

The Daily View: There is NO Crisis, Donald Sterling, and Inflation

Hasn’t the left been predicting China’s economic crisis since 2006? Nice to see the crisis ended before it had a chance to begin. I wonder what crisis the left will front-run next. They are so good at predicting stuff that doesn’t happen. lol

Isn’t there also supposed to be a student loan crisis, a debt crisis, a wealth inequality crisis, a profit margins bubble, a rich people bubble, a stock market bubble, a web 2.0 bubble and – to top it off – another housing bubble, even though home prices are STILL well-below the 2006 peak for many regions?

According to the left, anything that shows an upward trend is supposed to be unsustainable and teetering on collapse. When your ideology is ontologically opposed to technological & economic growth, you activity seek crisis to disrupt it. If crisis does not come, you keep fanning the flames, beating the drums, and repeating the same ‘we are doomed’ chants until it happens or the crisis goes out of fashion, to be replaced with a trendier one like the current obsession over wealth inequality. We’re in 24/7 bubble & crisis mode. It’s a miracle you’re still alive to read this.

Welfare liberalism is willful denial of reality. The deliberate denial wealth inequality isn’t a big deal, denial that SAT and IQ scores are important, denial the world has become less violent, denial the U.S. economy is not bankrupt and is still – especially compared to the rest o the world – fundamentally sound, denial that talent and genes play a bigger role in success in life than grit and hard work, denial that TARP was a success, denial that America is still exceptional and so on. Libs want to believe that the differences between individuals, such as smart versus dumb, can only be ameliorated though more wasteful spending to narrow the wealth and achievement gap.

About the Donald Stirling story, the lesson is that older, wealthy men should stay stay away from young women – they are nothing but trouble. Look at some recent examples: Tiger Woods, Mark Stanford, Arnold Schwarzenegger, Eliot Spitzer and now Donald Stirling. The problem is most women, particularly younger women, are lacking in executive functioning skills. They seek short term gain and pleasure, are drawn to money and power, and are generally perfidious. While women are better than men at things like giving birth, preparing food and being sexy, men are superior at cognitively demanding tasks such as science, math and computer programming. Sotomayor on the supreme court is so risible absurd as to be indistinguishable from satire.

Nice to see the ‘bifurcated inflation’ theory get some mainstream media attention. We’ve been writing about this since 2011.

What has happened is that tangible goods have gotten cheaper but wages keep rising. This creates a gap that has to be filled through services becoming more expensive. Also, booming demand from the growing global middle class is driving up demand for commodities, tuition, healthcare, which increases prices because supply cannot keep up with the demand. Third, services like cable, tuition and healthcare tend to be inelastic which means consumer demand is unchanged by an increase in price. Since these service companies also tend to collude either intentionally or accidentally (like gas station and airlines), consumers will have to pay more because they have no choice.